Question
Offered Price $6.00

A firm faces uncertain revenues and uncertain costs

Question # 00620459
Subject: Economics
Due on: 11/22/2017
Posted On: 11/22/2017 04:31 AM

Rating:
4.1/5
Expert tutors with experiences and qualities
Posted By
Best Tutors for school students, college students
Questions:
90759
Tutorials:
90790
Feedback Score:

Purchase it
Report this Question as Inappropriate
Question

5. A firm faces uncertain revenues and uncertain costs. Its revenues may be

$120,000, $160,000, or $175,000, with probabilities .2, .3, and .5, respectively. Its costs are $150,000 or $170,000 with chances .6 and .4, respectively. (Revenues and costs are independent.)

a. How many possible profit outcomes exist? Draw a decision tree listing these profit outcomes at the branch tips. Compute the firm's expected profit by folding back the tree. (It does not matter which uncertainty, demand or cost, is resolved first in the tree.)

Tags uncertain costs revenues firm faces costs revenues profit tree respectively outcomes uncertain expected firms compute branch tips folding does cost resolved demand uncertainty matter listing decision 0 1 2 probabilities 3 chances independent draw 4

Tutorials for this Question
Available for
$6.00

A firm faces uncertain revenues and uncertain costs

Tutorial # 00619142
Posted On: 11/22/2017 04:32 AM
Posted By:
Best Tutors for school students, college students dr.tony
Expert tutors with experiences and qualities
Questions:
90759
Tutorials:
90790
Feedback Score:
Report this Tutorial as Inappropriate
Tutorial Preview …faces xxxxxxxxx revenues…
Attachments
A_firm_faces_uncertain_revenues_and_uncertain_costs.ZIP (18.96 KB)
Preview not available.
Purchase this Tutorial @ $6.00 *
* - Additional Paypal / Transaction Handling Fee (3.9% of Tutorial price + $0.30) applicable
Loading...